On January 29th, El Salvador's Congress rapidly endorsed a bill from President Nayib Bukele amending the bitcoin law to align with an agreement with a significant international lender, allowing for the voluntary acceptance of the cryptocurrency.
The majority of Congress members belong to Bukele's New Ideas Party. In 2021, El Salvador made history by adopting cryptocurrency as legal tender alongside the U.S. dollar, attracting global attention and positioning Bukele as a prominent supporter of bitcoin.
Following a $1.4 billion loan agreement with the International Monetary Fund (IMF) in December, El Salvador adjusted its approach to bitcoin, complying with the IMF's advice to restrict exposure by making bitcoin acceptance voluntary for the private sector, as reflected in the swiftly approved legislation.
Before the vote, Elisa Rosales, a legislator from the ruling party, emphasized the need for reform to ensure the permanent status of bitcoin as legal tender" and to facilitate its "practical implementation.
The reform passed with overwhelming support, garnering 55 votes in favor and only two against. With U.S. President Donald Trump's recent election victory and expectations of more favorable cryptocurrency regulations from Washington, the value of bitcoin has soared to unprecedented levels.
Bukele's administration has signaled its intention to continue acquiring bitcoin to bolster its reserves.